According to the report, annual trading volumes dropped by 19%, while sales counts declined by 18% compared to 2023.
Despite a surge in crypto market activity – fueled by Bitcoin reaching all-time highs and rapid DeFi growth – NFTs struggled under the burden of their inflated valuations.
OpenSea Trading Volume Plunges 99% in 3 Months as NFT Winter Intensifies #NFTs, which blew into popularity in mid-2021, are now facing the brunt of the declining fortunes in crypto as epitomized by the drop on the leading NFT sales platform.https://t.co/ltfvw5ckzz pic.twitter.com/o0brJeMGWM
— BitKE (@BitcoinKE) August 31, 2022
At the start of the year [2024], NFT trading volumes reached $5.3 billion in Q1 2024, marking a modest 4% rise compared to the same period in 2023. However, this momentum was short-lived, with volumes dropping to $1.5 billion in Q3 2024 before partially recovering to $2.6 billion in Q4 2024.
Despite these fluctuations, annual sales counts saw a significant decline, reflecting a broader trend: while individual NFTs grew more expensive in tandem with rising crypto token prices, overall market participation decreased.
On an annual basis, NFT trading volume decreased by 19% compared to 2023, and NFT sales saw an 18% decline. This made 2024 one of the worst-performing years since 2020 in terms of both trading volumes and sales numbers.
Spotlight: Pudgy Penguins
Pudgy Penguins led the market of NFT collections by trading volume, despite a 44% decline in sales count.
Interestingly, their floor price surged by 114%, highlighting the impact of the substantial efforts made throughout 2024.
Pudgy Penguins has expanded its brand by launching plushies in major retailers such as Walmart, Walgreens, and Target in the United States, as well as Selfridges and Argos in the UK.
In May 2024, they teamed up with Mythical Games to create a blockchain-enabled mobile game, aiming to combine their popular penguin characters with immersive gaming experiences. Additionally, in September 2024, Pudgy Penguins formed a partnership with Spanish football club, CD Castellón, becoming the first PFP NFTs to be featured on a professional football uniform.
These initiatives highlight that NFTs with real-life utility continue to perform strongly, with Pudgy Penguins capitalizing on its success to list on Binance and conduct token airdrops.
[TECH] LISTING | Pudgy Penguins ($PENGU) Lists on Binance, Users Set for Airdrop Rewards: $PENGU, the token by Web3 project, Pudgy Penguins, was successfully listed on the Binance Exchange on December 17 202.. https://t.co/NALfEoYWS5 via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) December 21, 2024
When analyzing NFT collections by sales count, gaming-related NFTs emerged as the clear leaders. This trend underscores the growing adoption of NFTs within the gaming sector, where they enable true ownership of in-game assets and support player-driven economies.
Blur remained the dominant marketplace throughout 2024, with the exception of Q3 2024. By Q4 2024, Blur and OpenSea were nearly equal in market share. Blur’s success was largely fueled by a series of airdrop campaigns and its zero-fee trading model, which appealed to cost-conscious traders.
Meanwhile, Magic Eden came second outpacing OpenSea in terms of market share.
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